Logistics infrastructure feasibility study

Objective

On behalf of a mining company, provide an initial, and then later more detailed feasibility study on the proposed expansion of its iron ore mine in Ukraine. This must include the logistics involved in the export of the additional iron ore production, planned to expand from nine to 55 million metric tonnes per annum (mtpa).

Absolute information and capital expenditure details are required for the upgrade of the transport system and its infrastructure from the mine site to numerous international delivery points.

Activity

The results of the initial study focused further investigation on the feasibility of logistics for an increased output of up to 20 million mtpa in less than five years.

The study concentrated on upgrades to the local private and national rail system and its capability of handling the full annualised capacity during winter months when other transport options are unavailable.

Further information included the drawing up of an execution strategy for complete development of the works; identification of which infrastructure investments are likely to remain assets and which would revert to state ownership; and the drawing up of a schedule to correlate with incremental capacity expansion. All costs were estimated with an accuracy of +/-15 per cent. Potential risks and mitigations associated with the project were also outlined.

Trans Global Projects’ findings were used extensively by the client when discussing investment with selected financial institutions.